THE ASSOCIATION OF
BUSINESS PROCESS
M AN AG E M EN T
PROFESSIONALS
H A N DBO OK
POLICIES & PROCEDURES
VERSION: 1.3 FEBRUARY 18, 2007
ABPMP HANDBOOK OF POLICIES AND PROCEDU RES
CONTENTS
SECTION I: GENERAL .............................................................................................................. 1
GE.2006.001 DIRECTOR REIMBURSEMENT FOR MEETING ATTENDANCE .................................. 1
SECTION II: MEMBERSHIP ..................................................................................................... 1
ME.2006.001 MEMBERSHIP PERIOD ........................................................................................... 1
ME.2006.002 DIRECTOR MEMBERSHIP FEE WAIVERS ............................................................... 1
SECTION III: CHAPTERS ......................................................................................................... 1
CH.2007.001 PLACEHOLDER ....................................................................................................... 1
SECTION IV: EDUCATION ....................................................................................................... 2
ED.2006.001 BPM101 INSTRUCTOR HONORARIUMS ................................................................. 2
ED.2006.002 LICENSING THE BPM101 TUTORIAL ..................................................................... 2
SECTION V: INFORMATION ................................................................................................... 2
IN.2006.001 PLACEHOLDER ........................................................................................................ 2
SECTION VI: FINANCE ............................................................................................................. 2
PROPOSED FI.2007.001 NON-PROFIT STATUS AND PRINCIPLES .............................................. 2
PROPOSED FI.2007.002 EXPENSE REIMBURSEMENT POLICIES ................................................. 4
PROPOSED FI.2007.002 CHAPTER FINANCES ........................................................................... 8
SECTION VII: OPERATIONS ................................................................................................. 11
OP.2006.001 PLACEHOLDER ..................................................................................................... 11
SECTION VIII: COMMUNICATIONS ................................................................................... 11
CO.2006.001 PLACEHOLDER ..................................................................................................... 11
SECTION IX: RELATIONSHIPS ............................................................................................ 11
RE.2006.001 PLACEHOLDER ..................................................................................................... 11
SECTION X: MARKETING ..................................................................................................... 11
MA.2006.001 PLACEHOLDER .................................................................................................... 11
SECTION XI: ADVISORS......................................................................................................... 11
AD.2006.001 PLACEHOLDER .................................................................................................... 11
APPENDIX .................................................................................................................................. 12
CHANGES TO THE HANDBOOK:.................................................................................................. 12
II
ABPMP HANDBOOK OF PO LICIES AND PROCEDURE S
S E C T I ON I : G E N E R A L
GE.2006.001 DIRECTOR REIMBURSEMENT FOR MEETING ATTENDANCE
OLD:
Directors may request reimbursement for up to $1,000 for travel and expenses for one
Board of Directors Meeting per year.
PROPOSED:
Directors may request reimbursement for travel and expenses for Board of Directors
Meeting. A cap on the amount of expenses to be reimbursed for the following year will
be voted on by the board annually during budget setting. See FI.2007.2 for guidelines on
director and officer expenses
S E C T I ON I I : M E M B E R S H I P
ME.2006.001 MEMBERSHIP PERIOD
Memberships expire at the end of calendar months.
Memberships processed during the first half of a month expire at the end of that same
calendar month in the following year. Memberships processed during the 2nd half of the
month expire at the end of the following calendar month in the following year.
For example:
- if we process your new member application from the 1st to the 15th of may 2006, the
membership expires 5/31/2007.
- if we process the membership from the 16th to 31st of may 2006, your membership
expires 6/30/2007.
ME.2006.002 DIRECTOR MEMBERSHIP FEE WAIVERS
Director membership fees will be waived during their term of office after one year of service
on the board. (BOD meeting 2/19/2006)
S E C T I ON I I I : C H A P T E R S
CH.2007.001 PLACEHOLDER
Placeholder
1
S E C T I ON I V: E D U C A T I ON
ED.2006.001 BPM101 INSTRUCTOR HONORARIUMS
For our BPM101 class, instructors will be paid an honorarium of $500 (up to 15
participants) or $1,000 (above 15 participants) for each class taught. (12/02/2006)
ED.2006.002 LICENSING THE BPM101 TUTORIAL
ABPMP will on occasion license the BPM101 tutorial, “BPM 101: An Introduction to
Business Process Management and Business Process Management Systems” to training
providers.
The license includes an electronic copy of the course presentation with notes, the right
to provide courses based on the BPM101 materials for some period of time, the right to
produce bound copies of the course presentation as handouts for attendees, and the
right to advertise the course in the vendor’s marketing materials and on the vendor’s
website.
The vendor agrees not to change the course materials without prior permission of
ABPMP and to fully acknowledge ABPMP’s authorship and ownership of the materials
in all references to the course.
Licensing Fee:
For courses provided to clients that were referred to the vendor by ABPMP, the
licensing fee will be 50% of the net profit after expenses.
For courses provided to clients developed by the vendor’s marketing efforts, the
licensing fee will be 25% of the net profit after expenses.
The training vendor must agree to provide a full accounting of all revenues and expenses
related to each presentation of BPM101, and payment of the licensing fee within 45 days
following each event.
S E C T I ON V: I N F O R M A T I ON
IN.2006.001 PLACEHOLDER
Placeholder
S E C T I ON V I : F I NA N C E
PROPOSED
FI.2007.001 NON-PROFIT STATUS AND PRINCIPLES
The US Internal Revenue Service issued a determination letter in October 2003 that
recognized the ASSOCIATION OF BUSINESS PROCESS MANAGEMENT
2
PROFESSIONALS as exempt from federal income tax under section 501(c)(6) of the
Internal revenue code. Because ABPMP is not an organization described in section
170(c) of the code, donors may not deduct contributions made to our organization.
ABPMP consists of a parent organization (“HQ” or “Corporate”) and Subordinate
organizations (“Chapters”) all sharing a single tax identification number. ALL chapter
financial records must be kept under a single set of books as the whole organization -parent and subordinate chapters -- file a single tax return.
501(c)(6) status implies that the organization is a business league which is not organized
for profit and no part of the net earnings of which inures to the benefit of any private
shareholder or individual.
A business league is an association of persons having a common business interest,
whose purpose is to promote the common business interest and not to engage in a
regular business of a kind ordinarily carried on for profit. Its activities are directed to the
improvement of business conditions of one or more lines of business rather than the
performance of particular services for individual persons.
An IRC 501(c)(6) organization is a membership organization characteristically supported
by dues. While such an organization may receive a substantial portion or even the
primary part of its income from non-member sources, membership support, both in the
form of dues and involvement in the organization's activities, must be at a meaningful
level.
IRC 501(c)(6) describes a business league as an organization in which "no part of the net
earnings inures to the benefit of any private shareholder or individual."
The activities of a business league must be directed to the improvement of business
conditions of one or more lines of business in order to qualify for exemption.
Conversely, the activities of the organization cannot be primarily directed to the
performance of particular services for individual persons.
Compensation of Officers
An exempt organization (EO) may have officers such as a president, vice-president,
secretary, treasurer, executive director, and CEO (chief executive officer). As used here,
the term officer includes anyone who holds a position of trust, authority, or command
within an organization.
The Internal Revenue Code defines corporate officers as employees for FICA, FUTA,
and FITW purposes. However, an officer of a corporation who does not perform any
services or performs only minor services and who neither receives nor is entitled to
receive, directly or indirectly, any remuneration, is not an employee of the corporation.
Volunteer Officers/Workers
Many exempt organizations (“EO”) have officers who are volunteers and not paid for
their services. These officers may receive reimbursement or an allowance for out-ofpocket expenses. For example, if an officer is required to attend a convention
representing the EO, the EO might pay for the trip. Similarly, an EO may provide a
monthly allowance to an officer for automobile use.
3
How this reimbursement/allowance is paid and accounted for will determine its
employment tax treatment. The payments issued to the officer may be made under an
accountable plan or a non-accountable plan. ABPMP maintains an accountable plan.
A plan under which an employee or volunteer is reimbursed for expenses or receives an
allowance to cover expenses is an accountable plan only if:

There is a business connection for the expenses;

The employee/volunteer adequately accounts for these expenses within a
reasonable period of time; and

The employee/volunteer returns any amounts of excess expenses within a
reasonable period of time.
Reimbursable Expenses
Expenses incurred for travel, meals and entertainment must be ordinary and necessary
expenses incurred while carrying on business.
Entertainment expenses (Including entertainment-related meals) must be directly related
to, or associated with, the conduct of business. Documentation must show that:

The main purpose of the combined business and entertainment was the active
conduct of business,

You did engage in business with the person during the entertainment period,
and

You had more than a general expectation of getting income or some other
specific business benefit at some future time.
You must document the date, name, title, company, establishment, form of
entertainment and the expected business benefit along with your receipt(s). You must
submit an expense report for allowed expenses within a reasonable period of time.
PROPOSED FI.2007.002 EXPENSE REIMBURSEMENT POLICIES
APMP policies and rule sets are defined to support expeditious and least-cost
transaction objectives. Expense reports requiring multiple reviews are costly. The
organization operates on defined policies and procedures to support a cost effective and
expeditious reimbursement process.
Corporate Board Meetings
Travel expenses for Corporate Board Meetings requiring Board and Chapter Directors
attendance will be reimbursed by submitting an ABPMP expense report. You may only
include those expenses directly related to the cost of attending the meeting.
Expenses may not exceed $800 per person. This allowance includes actual air travel,
ground transport, mileage, transport to and from the airport, hotel and meals. The daily
meal allowance is capped at $35 / day. Receipts are required for all line item expenses.
ABPMP does not accept single line item charges for alcoholic beverages as meal entries.
A cocktail or glass of wine with dinner are acceptable.
Alternate to above: Caps may be set on certain types of expenses, meal allowances, per
diem expenses, and so forth, by the board during budget planning sessions.
4
Ground transportation while away from home is restricted to airport shuttles (hotels
with shuttles are recommended), group shuttles, public transportation or taxis. Please try
to use the most cost effective method possible. Rental cars and associated parking costs
at the corporate meeting will generally not be reimbursed. Exceptions to this rule require
approval before the event transpires.
Need alternative wording for above
As a general rule, ABPMP does not support alcohol as a reimbursable expense except
when it is included in recognition, reward dinner instances and / or for marketing
activities such as new membership drives or relationship development.
General Reimbursable Business Expenses Policies
ABPMP members may deduct the cost of business travel away from home, local
transportation, entertainment, gifts, and other ordinary and necessary expenses related to
the business purpose of a member’s role.
Deductible travel expenses are the ordinary and necessary expenses of temporarily
traveling away from your tax home overnight on business. They include the cost of
transportation, meals (subject to certain limits), lodging and other expenses related to
your business travel. For travel expense purposes, generally, your tax home is the entire
city or general area where your principal place of business is located, regardless of where
you maintain your family residence.
Deductible transportation expenses include the ordinary and necessary expenses of
going from one workplace (away from the residence) to another. If you have an office in
your home which is maintained for the convenience of ABPMP and that is used
exclusively on a regular basis as your principle place of business (e.g., if ABPMP does
not provide you with office space), you may deduct the cost of traveling between your
home office and work places associated with your employment. You may deduct the
cost of going between your residence and a temporary work location outside of the
metropolitan area where you live and normally work. If you regularly work at one or
more regular business locations away from your residence, you may deduct the cost of
going to a temporary work location in that business regardless of the distance. For these
purposes, a temporary work location is a location where you realistically expect to work
for 1 year or less. Transportation expenses include the cost of transportation by car, air,
rail, bus, taxi, etc. ABPMP reimburses mileage at IRS standard mileage rates.
Business entertainment expenses and business gift expenses may be deductible, but
subject to certain limits. For information on business entertainment expenses, refer to
IRS Publication 463, Travel, Entertainment, Gift, and Car Expenses, for additional
information on business expenses.
You must keep records to prove the expenses you deduct. For general information on
record keeping, refer to IRS Topic 305.
If ABPMP reimbursed you or gave you an advance or allowance for your employee
business expenses that is treated as paid under an accountable plan, you do not include
the payment in your income.
5
To be an accountable plan, ABPMP’s reimbursement or allowance arrangement must
include all three of the following rules:

You must have paid or incurred expenses that are deductible while performing
services as an employee.

You must adequately account to your employer for these expenses within a
reasonable time period, and

You must return any excess reimbursement or allowance within a reasonable
time period.
If ABPMP’s reimbursement arrangement does not meet all three requirements, the
payments you receive will be treated as income and should be included in the wages
shown on your Form W–2. You must report the payments as income, and you must
complete Form 2106 (PDF) or Form 2106-EZ (PDF) and itemize your deductions to
deduct your expenses.
Forms
ABPMP makes expense report forms available on its web site or through the Director of
Finance.
Reasonable Period of Time
Expense reports must be filed within a reasonable period of time. Reasonable is
construed as within 30 days of an advance payment and within 60 days after the
expenses were paid or incurred. You must return any excess reimbursement within 120
days after the expenses were paid or incurred.
Meal Expenses
You may deduct the cost of meals if it is necessary for you to stop for substantial sleep
or rest to properly perform your duties while traveling away from home on business.
Meals do not include snacks, bar bills or sodas from vending machines.
Transportation Expenses
The standard mileage rate for the cost of operating your vehicle is the IRS standard
mileage rates. For the current rate, contact the Vice President of Finance or our
financial administrative services provider.
Airline receipts are required. You may not substitute a printed itinerary for a receipt.
Receipts are available when you obtain your boarding pass or at the airport. Copies of
Credit card statements (please blackout irrelevant line items) may be accepted at the
discretion of the financial administrative services provider.
For further details, please see IRS publication 535 Business expenses or publication 463
Travel, entertainment, gift, and car expenses.
Rules of Thumb
Always request a preferred rate during any hotel stay
If a hotel shuttle is available and the cost of ground transport is significantly less than a
rental car, you should not rent a car. Ride sharing is preferred.
6
If meals are available at a group meeting, you should not generally have meals away
from the meeting
If home airport parking is less than a taxi or airport limo, drive your car to the airport
You should be able to look a new member in the eye and easily justify how you spent
their dues
We realize you are volunteering your time. Make your expenditure decisions wisely – it is
okay to choose convenience, but not extravagance.
General Procedures
-
Retrieve an expense reimbursement form from the ABPMP web site under Official
Documents or request a form for your local or headquarters finance person
-
Complete the form listing all expenses. Add appropriate details in the notes section
where further documentation (e.g., entertainment) is required
-
list any prepaid expenses including any expense you paid for with a corporate debit
card or credit account in the main section
-
subtotal the expenses
-
deduct any prepaid expenses from the subtotal
-
enter the total amount to be reimbursed
-
Have your chapter treasurer or director of finance mark the report as OK2Pay and
have them sign & date the report.
-
Keep a copy for your records
-
Submit the report in hardcopy format by Postal service to:
Assn of Business Process Mgmt Professionals
attn: Accts Payable
PO Box 14500
Chicago, IL 60614-0500
-
Expense reports may be submitted simultaneously via email which may speed the
reimbursement process. You may also scan and email receipts. Electronic reports
must be followed by hardcopy submission before a check is issued
-
Approvals may be submitted electronically and accepted at the discretion of the
director of finance and accounts payable clerk.
-
The Post Office box is checked at least once per week. Checks are normally issued
within 3 days of receipt. Incomplete, incorrect or disallowed expense items will
delay processing.
7
PROPOSED FI.2007.002 CHAPTER FINANCES
All chapter financial transactions must be performed in accordance with corporate
procedures and guidelines. New or smaller chapters will have their accounting handled
by corporate. Established chapters may establish their own banking accounts at the
discretion of corporate. The director of finance must be included as an authorized signer
on any chapter financial account.
Chapter Officers must perform their financial duties in alignment with current
transaction processing guidelines and in accordance with the current accounting system.
Violators may have their chapter charters revoked and bank accounts seized.
Finance Activities:
ANNUALLY
CREATE BUDGETS: Budgets are normally prepared in September, submitted in
October, reviewed and revised in November and approved in December for the
following year.
Even if corporate handles your books, you are responsible for creating budgets,
maintaining local records and monitoring local budgets
QUARTERLY
Attend Finance conference calls to

review budgets

share best practices

share significant current status items

address new opportunities / needs

Review quarterly reports and activity

Confirm chapter dues are being properly allocated to your chapter

Confirm any grants are properly requested an accounted for
For chapters that maintain their own bank accounts, send all reimbursed receipts to
corporate attached to their expense report forms. Keep a copy of your records. For the
quarter ending in December, all receipts must be submitted by January 22nd and
received by January 29th.
MONTHLY
Review and Manage your budget.

Are you meeting revenue and expense targets?

Can you describe why?

Track membership goals with membership chairperson

Are you reaching your goals?
8

Are your members renewing?

Are you acquiring new members?
Monitor disbursements

Inbound - Are they being handled on a timely basis?

Outbound - Are they being handled on a timely basis?
Review growth level, operating model and associated P&L

discuss with chapter board members

discuss with corporate as needed
Transaction Processing Procedures
Expense Reimbursements
Expense reimbursements require the following:

Adequate reserves in the chapter fund

Advances may be available. Contact your finance person

An approved budget

Meeting minutes or chapter board approvals for out-of-budget expense
authorization

An approved “OK2PAY” expense report signed by a chapter president or
treasurer other than the individual submitting the expense report

Original receipts (legible copies are acceptable where originals are unavailable)

Copies of printed materials, electronic files, conference brochures or any other
reasonable items associated with the expense

For entertainment expenses you need to list who was there (name/company if
applicable), the purpose of the meeting and what the expense was for (meal,
refreshments,etc.) let me know if you need IRS publication references

If there are reusable assets (signage, table skirts, cardscan, printed brochures,
etc.), describe where are they stored? (Could other chapters borrow them?)
Rules of thumb

You may not approve your own expense report

You may not sign any check payable to yourself
9

You may not use corporate credit cards, lines of credit, merchant accounts or
debit cards for personal expenses
Paying Chapter Expenses
To keep everything in balance, and make your reporting and tax filing accurate, do the
following.
For Chapters maintaining their own bank accounts:
1. Upon Receipt of the Bill
a.
enter the bill, use the actual expense category (debits expense, credits a/p)
2. Pay the bill
a.
Write or print the check(debits a/p, credits bank balance)
For chapters whose funds are maintained by corporate HQ, there is an additional step:
3. deduct the expense from the amount owing the chapter
a. Create a journal Entry to recognize the chapter’s income and decrease HQ’s
liability to the chapter (debits _chapter income, credits _chapter allocation)
Processing Memberships
For US members, try to get a 9-digit zip code as it will reduce mailing costs. You can
verify addresses and find the zip+4 code at http://zip4.usps.com/zip4/welcome.jsp
Enter the street address and 5 digit zip code (that’s enough). On the application form,
write the 9-digit zip code and any additional information gleaned from the envelope or
check such as check number, check date and add the sales receipt number.
SALES RECEIPTS should be entered into QuickBooks with the preferred member
names in last name, first name format.
PAYMENTS against invoices are entered separate from sales receipts. No receipt is
generated. A statement is available upon request.
Returning members (former members who pay their dues beyond 90 days from their
membership expiration date) require Sales receipts, following the same process as a new
member. Please note the expiration date, the ‘gap’ and their return date on their
membership record. Be sure to initial and date your entry.
Memberships paid for at a chapter event should be entered online on behalf of the
member. Note that their status will be incomplete and inactive until payment is
processed at HQ accounts payable. Please send in a copy of their membership
application form and check as soon as possible.
10
S E C T I ON V I I : OP E R A T I ON S
OP.2006.001 PLACEHOLDER
Placeholder
S E C T I ON V I I I : C OM M U N I C A T I O N S
CO.2006.001 PLACEHOLDER
Placeholder
S E C T I ON I X : R E L A T I O N S H I P S
RE.2006.001 PLACEHOLDER
Placeholder
S E C T I ON X : M A R K E T I N G
MA.2006.001 PLACEHOLDER
Placeholder
S E C T I ON X I : A DV I S OR S
AD.2006.001 PLACEHOLDER
Placeholder
11
APPENDIX
CHANGES TO THE HANDBOOK:
Effective Date
Added or Changed From/To
Month DD, YYYY
Strike out changed to bolded
February 20, 2006
Added GE.2006.001, Director Reimbursement For Meeting Attendance
Added ME.2006.002, Director Membership Waivers
Added ED.2006.002, Instructor Honorariums
December 02, 2006
Changed From:
For our BPM101 class, instructors will be paid an honorarium of $500 (up to 15 participants)
or $1,000 (above 15 participants) for each class taught, provided that there is an agreement
in place where ABPMP will receive at least $2,000. (02/19/2006)
Changed To:
For our BPM101 class, instructors will be paid an honorarium of $500 (up to 15 participants)
or $1,000 (above 15 participants) for each class taught. (12/02/2006)
February 17-18, 2007
Proposed Changes:
GE.2006.001 DIRECTOR REIMBURSEMENT FOR MEETING ATTENDANCE
OLD:
Directors may request reimbursement for up to $1,000 for travel and expenses for one
Board of Directors Meeting per year.
PROPOSED:
Directors may request reimbursement for travel and expenses for Board of Directors
Meeting. A cap on the amount of expenses to be reimbursed for the following year will be
voted on by the board annually during budget setting. See FI.2007.1 for guidelines on
director and officer expenses
Add:
FI.2007.001 NON-PROFIT STATUS AND PRINCIPLES
FI.2007.002 EXPENSE REIMBURSEMENT POLICIES
FI.2007.002 CHAPTER FINANCES
12